SUMMER TRAINING PROJECT REPORT

On

“INSURANCE INDUSTRIES IN INDIAN MARKET”

Towards partial fulfillment of

Master of Business Administration (MBA)

School of Management, Babu Banarasi Das University, Lucknow

SUBMITTED BY

ANMOL KUMAR

MBA 3rd semester

Roll No. - 1220672071

Session 2023-2024

School of Management

Babu Banarasi Das University

Sector I, Dr. Akhilesh Das Nagar, Faizabad Road, Lucknow (U.P.) India.
Certificate from the Organization

i
Bona-fide Certificate of Dean -School of Management

ii
 DECLARATION
I do hereby declare that all the work presented in the research report entitled

“INSURANCE INDUSTRIES IN INDIAN MARKET” is carried out and being

submitted at the school of management for the award of Master of Business

Administration, is an authentic record of ANMOL KUMAR. The work is carried

out under the guidance of Ms. Manjeet Kaur (Assistant Professor). It hasn’t been

submitted at any other place for any other academic purpose.

ANMOL KUMAR

iii
 ACKNOWLEDGEMENT

In order to accomplish a task, facts, situations and persons integrate together to form a

background. “Greatness lies in being grateful and not in being great.” This

research report is a result of contribution of distinct personalities whose guidance here

made my effort a producing one, as “no task is a single man’s effort”.

I would like to express my deep sense of gratitude to the respectable guide

distinguished personalities for their precious suggestions and encouragement during

the project. The experience which is gained by me during this project is essential for me

at this turning point of my career. I am thankful to my College guide Ms. Manjeet

Kaur(Assistant Professor) for kind support and supervision under whose kind &

constant guidance I had the opportunity to expand my horizons and view the various

problems from different prospective. I am also thanking her for sparing her valuable

time to listen my problems and difficulties faced by me during the completion of this

project report.

ANMOL KUMAR

iv
 PREFACE

It was a privilege for me to work in a reputed organization. This has given us an

opportunity to work in a truly professional environment where team work score over

individual effort, where there is a helpful atmosphere. A well planned, properly

executed and evaluated training helps a lot in inoculating good work culture. The

project on “INSURANCE INDUSTRIES IN INDIAN MARKET” has been made

to facilitate effective understanding about the marketing aspects.

The project training has provided me an opportunity to gain practical experience,

which has helped me to increase my sphere of knowledge to a greater extent. I have

tried to summarize all our experience and knowledge acquired up till now, in this

report. This project is a keen effort to obtain the expected results and fulfill all the

information required.

v
 TABLE OF CONTENT
Declaration i

Acknowledgement ii

Preface iii

Chapter No. Particulars Page No.

1. Introduction 1-39

2. Company Profile 40-62

3. Objectives of the study 63-64

4. Research Methodology 65-69

5. Data Analysis & Interpretation 70-79

6. Findings 80-82

7. Suggestions 83-84

8. Conclusion 85-87

9. Limitations of the study 88-89

10. Bibliography 90-91

11. Annexure 92-95

vi
INTRODUCTION

1
 INTRODUCTION

Everyone is exposed to different kinds of risks. Future is not at all uncertain, but there

is way to protect one‟s family and make one‟s children‟s future safe. Life Insurance

companies helps to ensure that the family‟s future is not just secure but also

prosperous. Insurance is an instrument by which families of a small number are

compensated out of funds that is the premium amount collected from large number of

people. Insurance firms pay for financial losses arising out of happening of certain

events which are insured for example: in a personal accident death, in fire policy the

insured events are fireplace and alternative allied perils like riot and strike, explosion

etc. thus insurance safeguard against uncertainties. It helps in providing financial

recompense for the losses incurred because of the incident of unanticipated events,

insured with in the policy of insurance. Moreover, through variety of acts of passed by

parliament, certain types of insurance are legally enforced in our country for example

third party insurance under motor vehicles Act, public insurance for handlers of

dangerous substances below surroundings protection Act etc. Insurance companies are

in the business of taking variety of risks. The insurance companies write different

policies that deal with risks, and even underwrite exotic risks. Thus, insurance

companies should be really good at managing their own risks. However the reality is

different. These companies are good at assessing insurance risks for their policy

holders, but not that good at setting up structures for managing their own business and

operating risks. Insurance is a system in which the risk of one is spread on the

shoulders of many. While it becomes impossible for a person to bear by

himself/herself all kinds of losses right from his/her own health, property or interest

arising out of an unforeseen contingent situation, insurance is a process which

distributes the loss on a number of people within the group formed for this particular

2
purpose. Risk and uncertainty are inseparable twins. The insurance companies cover

the uncertainties of the financial losses. The insurance companies‟ do not have any

command over the uncertainties. This makes it essential that these companies to work

in a manner that becomes instrumental in spreading the losses. The insurance

companies have to struggle with drastic, and sometimes sudden changes to

government policies, regulations, and risks associated with natural environmental

disasters. Predictive models called as generalized linear models (GLMs), have

become the standard for various insurance companies round the globe. GLMs are

used to foresee the plausible risks a particular sector might face by taking into account

the various problems that may arise in the particular sector. Once acquainted with this

knowledge, insurance companies can price policies that can ensure their continued

service to consumers, solvency of the organization, as well as their profits. Most

economic risk comes from the variation in the expected outcome. Insurer uses various

techniques to identify, monitor and manage the risks. Some of them include stochastic

modeling, value at risk (VaR), tail risk (Tail VaR), calculations of economic capital,

stress tests and more and identify the negative impact. Identification of risk is the

process of determining where the risk lies. The risk may be relating to property,

damage, Nature, Life, Fire, Liability, natural calamities, theft are the various hazard.

The life insurance industry has long been interesting in making note of the changes

that can affect the exposure to various risk and financial losses. Over the many years

of its existence, the insurance industry has been efficient enough in forecasting the

future and making changes according to the problems it foresees. This is primarily

because of the introduction of predictive models, a tool that is used in the industry to

calculate risk and price coverage accordingly. The insurer makes assumptions for the

future for various parameters such as expenses, mortality, morbidity, interest etc. Sub

3
 regulation (b) of Regulation 5 of IRDA Regulations (Assets, Liabilities and Solvency

Margin of Insurers) 2000; specifies that the best estimate assumption shall be adjusted

by an appropriate Margin for Adverse Deviation (MAD) that depends upon the degree

confidence. The purpose of Margin for Adverse Deviation is to have a buffer for

wrong estimations of the best estimate or adverse fluctuations. But it does not include

volatility and catastrophic risks Risks based capital includes for default risk, mortality

morbidity risk, volatility risk, catastrophe risk, margin risk and fund risk. Each

company has to develop implement and maintain applicable and effective procedures

to manage its capital position, i.e. ongoing minimum capital requirements, and future

capital requirements.

The capital management designing identifies the amount, quality and sources of

additional capital required, availability of any external sources, estimating the

financial impact of raising additional capital, taking into account the plans and needs

of assorted business units of the corporate, Risk Based Capital is an amount of capital

based on an assessment of risk that a company should hold to protect policy holders

against adverse developments. Risk based capital involves identifying the key risks

and quantifying them.

The types of risks being faced by insurance corporations are listed with a short

description:

i. Insurance Risk: It is underwriting, risk associated with the uncertainty of business

written in the future

ii. Market Risk: It is the risk associated with movements in interest rates, forcing

exchange rates or asset prices lead to an adverse movement in asset values

4
iii. Credit Risk: If another party fails to perform them in time i.e. If the party fails to

pay the credit. So, allowance should be made for the financial effect of

nonpayment of reinsurance and of the non- payment of premium debtors.

iv. Liquidity Risk: It is the risk that a firm has insufficient financial resources to meet

its obligation as they fall due or can only secure the resources at excessive cost.

v. Operational Risk: It in the risk of direct or indirect loss resulting from inadequate

or failed internal processes, people and system or from External events. It is

general knowledge that life insurance firms square measure subject to 3 major

risks while moving into contracts with the policy holders: first, the death rate of

the insured lives may turn out to be higher than expected second, the management

expenses of the firms may be higher than the forecasted and third, circumstances

can result in a portfolio yield lower than that assured while calculating the

premiums.

NEED FOR LIFE INSURANCE

Risks and uncertainties are a part of life's nice journey -- accident, illness, theft,

natural disaster they're all built into the working of the Universe, waiting to happen.

Insurance then is man's answer to the vagaries of life. If you can not beat artificial and

natural calamities, well, a minimum of be ready for them and their aftermath

Insurance could be a contract between 2 parties - the insurance company (the

insurance company) and therefore the insured (the person or entity seeking the cover)

- whereby the insurance company agrees to pay the insured for money losses arising

out of any unforeseen events reciprocally for a daily payment of "premium”. These

unforeseen events are outlined as "risk" which is why insurance is termed a risk

cover.

5
RISKS IN LIFE INSURANCE

There are various types of risks in Life Insurance. Some of them are as follows:

1) Longevity Risk& Mortality Risk Longevity risk is the risk that a person, or

persons, lives longer. In the corporate world, this affects pension funds and

insurance companies. The corporate sponsor of a pension plan, or insurer

providing life assurance facilities, has the risk of higher than expected pay-outs as

a result of the increasing longevity of pension plan or insurance policy holders.

Mortality risk covers not only the risks associated with recipients of annuities who

are living longer than expected, but also the opposite risk that the holder of a life

insurance policy dies earlier than expected during the term of the policy.

2) Liquidity Risk Liquidity Risk is the risk of failing to maintain requisite levels of

cash and cash equivalents and being unable to pay the claims of the policyholders

in full.

3) Asset Liability Mismatch The present value of assets should be greater than the

present value of present value of liabilities so as to ensure that the company would

be able to meet the liabilities by liquidating the assets. These present values are

not fixed and keep on changing according to the interest rates prevailing in the

market.

If the interest rates are high, the present values would decrease and vice versa. So, the

assets to be invested in have to be carefully selected so as to achieve proper

AssetLiability matching. There are various techniques that can be used to minimize

this interest rate risk like Reddington's Immunization in which assets are chosen in

such a way that irrespective of the interest fluctuations, the present value of assets

remains larger than that of the liabilities.

6
4) Technological Advancements In the world of ever changing technology, its of

utmost importance to be conversant and well versed with the current technology.

AI (Artificial Intelligence) is becoming increasingly popularly in the world, which

affects insurance industry as well. The way people approach insurance from

“insured” side as well as “insurer” side would have to adapt if AI was to become

prominent in the future.

5) Competitors In Life Insurance Industry, LIC (Life Insurance Corporation) is a

major market player with which other life insurance companies such as IDBI

Federal Life competes for capturing the market share. The strategies, policies

launched by the competitors tend to affect the company in consideration.

6) Political Situation The political situation of the country majorly affects the way

policies, and operations are executed. In corporate world, lobbying (influencing

political parties directly or indirectly to get the work done)plays an important role

in smooth operations of the company. If the political scenario is chaotic, the

business may be adversely affected.

7) Law and Order The Insurance business in India is regulated by IRDAI (Insurance

Regulatory and Development Authority of India) which is responsible for setting

rules and standards for the insurance companies in the country.

8) Investment Risk Investment risk is the risk of incurring loss due to fluctuations in

the market value of the investments. These fluctuations may be due to market

factors which affect the entire market like inflation, rate of interest or

firm/industry specific factors. The investment is mainly done in 3 types of funds:

Debt, Equity, and Hybrid.

7
WHAT IS INSURANCE?

Insurance is a means of protection from financial loss. It is a form of risk

management, primarily used to hedge against the risk of a contingent or uncertain

loss.

An entity which provides insurance is known as an insurer, insurance company,

insurance carrier or underwriter. A person or entity who buys insurance is known as

an insured or as a policyholder. The insurance transaction involves the insured

assuming a guaranteed and known relatively small loss in the form of payment to the

insurer in exchange for the insurer's promise to compensate the insured in the event of

a covered loss. The loss may or may not be financial, but it must be reducible to

financial terms, and usually involves something in which the insured has an insurable

interest established by ownership, possession, or pre-existing relationship.

The insured receives a contract, called the insurance policy, which details the

conditions and circumstances under which the insurer will compensate the insured.

The amount of money charged by the insurer to the Policyholder for the coverage set

forth in the insurance policy is

called the premium. If the

insured experiences a loss which

is potentially covered by the

insurance policy, the insured

submits a claim to the insurer for

processing by a claims adjuster. The insurer may hedge its own risk by taking

out reinsurance, whereby another insurance company agrees to carry some of the risk,

especially if the primary insurer deems the risk too large for it to carry.

8
TYPES OF INSURANCE

 Life Insurance

 General Insurance

WHAT IS LIFE INSURANCE?

Life insurance is a contract that offers financial compensation in case of death or

disability. Some life insurance policies even offer financial compensation after

retirement or a certain period of time. Life insurance, thus, helps you secure your

family’s financial security even in your absence. You either make a lump-sum

payment while purchasing a life insurance policy or make periodic payments to the

insurer. These are known as premiums. In exchange, your insurer promises to pay an

assured sum to your family in the event of death, disability or at a set time.

Life insurance can help you support your family even after retirement. Depending on

what it covers, Life insurance can be classified into various types:

9
TAX BENEFITS

 Life insurance not only ensures the well-being of your family, it also brings

tax benefits.

 The amount you pay as premium can be deducted from your total taxable

income.

 However, this is subject to a maximum of Rs 1.5 lakh, under Section 80C of

the Income Tax Act.

 The premium amount used for tax deduction should not exceed 10% of the

sum assured.

WHAT IS GENERAL INSURANCE?

A general insurance is a contract that offers financial compensation on any

loss other than death. It insures everything apart from life. A general

insurance compensates you for financial loss due to liabilities related to your

house, car, bike, health, travel, etc. The insurance company promises to pay

you a sum assured to cover damages to your vehicle, medical treatments to

cure health problems, losses due to theft or fire, or even financial problems

during travel.

Simply put, a general insurance offers financial protection for all your assets

against loss, damage, theft, and other liabilities. It is different from life

insurance.

10
WHAT ARE THE TYPES OF GENERAL INSURANCE

AVAILABLE? / WHAT ALL CAN BE INSURED?

You can get almost anything and everything insured. But there are five key types

available:

1. Health Insurance

2. Motor Insurance

3. Travel Insurance

4. Home Insurance

5. Fire Insurance

HEALTH INSURANCE

Reimburses the amount you pay towards the treatment of any injury or illness.

It usually covers:

 Hospitalisation

 The treatment of critical illnesses

 Medical bills prior to or post hospitalisation

 This type of general insurance covers the cost of medical care. It pays for or Day

care procedures like Cataract operations

You can also opt for add-on benefits like:

 Maternity cover: Your health insurance covers you for the costs related to

childbirth. This includes pre-delivery check-ups, hospitalisation during delivery,

and post-natal care.

 Pre-existing diseases cover: Your health insurance takes care of the treatment of

diseases you may have before buying the health insurance policy.

 Accident cover: Your health insurance can pay for the medical treatment of

injuries caused due to accidents and mishaps.

11
Your health insurance can also help you save tax. Your premium payment can reduce

your taxable income.

MOTOR INSURANCE

Motor insurance is for your car or bike what health insurance is for your health.

It is a general insurance cover that offers financial protection to your vehicles from

loss due to accidents, damage, theft, fire or natural calamities

You can also get motor insurance for your commercial vehicles.

In India, you cannot drive or ride without motor insurance.

Let’s look at the two key types:

1. CAR INSURANCE
It’s precious—your car. You paid lakhs of rupees to buy that beauty. Even a single

scratch can be painful, forget about bigger damages.

Car insurance can reduce this pain for a few thousand rupees.

HOW IT WORKS:

What the insurer will pay for depends on the type of car insurance plan you purchase

2. TWO-WHEELER INSURANCE
This is your bike’s guardian angel. It’s similar to Car insurance.

You cannot ride a bike or scooter in India without insurance.

12
13
HOW IT WORKS:

As with car insurance, what the insurer will pay depends on the type of insurance and

what it covers.

TRAVEL INSURANCE

Travel insurance compensates you or pays for any financial liabilities arising out of

medical and non-medical emergencies during your travel abroad or within the

country.

WHAT ALL DOES TRAVEL INSURANCE USUALLY COVERS?

 Loss of baggage

 Emergency medical expenses

 Loss of passport

 Hijacking

 Delayed flights

 Accidental death

HOME INSURANCE

Home insurance is a cover that pays or compensates you for damage to your home

due to natural calamities, man-made disasters or other threats.

It covers liabilities due to fire, burglary, theft, flood, earthquakes, and sabotage. It not

only offers financial protection to your home, but also takes care of the valuables

inside the property.

14
FIRE INSURANCE

Fire insurance pays or compensates for the damages caused to your property or goods

due to fire.

It covers the replacement, reconstruction or repair expenses of the insured property as

well as the surrounding structures.

It also covers the damages caused to a third-party property due to fire.

In addition to these, it takes care of the expenses of those whose livelihood has been

affected due to fire.

HOW TO BUY INSURANCE?

You can buy in 4 simple steps:

STEP 1:

KNOW WHAT YOU NEED

 Understand the covers you need based on personal requirements.

 Get all the important details. For example, in the case of motor insurance get

details such as the manufacturing date of the vehicle, engine specifications, etc.

For health insurance, check whether you need insurance for self or the entire

family.

 This initial assessment will help you get an idea about the coverage that you need

STEP 2:

CHECK OPTIONS AVAILABLE

 Compare the benefits offered.

 Check the add-ons offered

 Don’t forget to read the exclusions

 What’s the sum assured?

15
 Are there any extra services offered

STEP 3:

PICK THE RIGHT PLAN

 Select the plan that best suits your requirements.

 Reach out to the company offering the plan.

STEP 4:

PAY PREMIUM

 Fill in the application and pay the premium.

 You can do it online on the insurer’s website.

HOW MUCH DOES INSURANCE COST?

Your insurance costs depend on your premium amount. This premium

amount depends on several factors that differ from insurance to

insurance. Here’s a look:

LIFE INSURANCE

 Age

 Health (past and current)

 Your occupation

 The type of coverage/plan

 Your smoking and drinking habits

 The sum assured

MOTOR/AUTO INSURANCE:

 Make-Model of the vehicle

 The type of coverage/plan

 The value, age of your vehicle

16
 Your claim history

TRAVEL INSURANCE

 The sum assured

 The type of coverage/plan

 Age

 Your health

 The location of travel

HEALTH INSURANCE

 Your family health history

 The sum assured

 The type of coverage/plan

 Your age and gender

 Your health history

HOME INSURANCE

 The size of your home

 The type of coverage/plan

 The age of your home and the systems installed therein

 The location of your home

 The sum assured

You can also use online calculators to check the premium amount

17
HOW TO USE THE INSURANCE MONEY?

 You have to make a claim against your insurance

policy.

 Give details about the loss you suffered. This differs from insurance to

insurance.

 Submit the bills/proof of damage, loss, hospitalisation, etc.

 The insurance company would verify your claim.

 It will then pay the bill or reimburse you for your loss.

TYPES OF LIFE INSURANCE

TERM INSURANCE

Besides providing a safety cushion for your loved ones even when you are not around,

the premiums paid on term insurance is exempt from tax under Section 80 C of the IT

Act. Even the claim/maturity amount that you receive on outliving the policy is

exempt under Section 10 (10D). However, smoking habits may affect the premiums

you pay (more reason to quit!).

ULIP

An acronym for Unit-Linked Insurance Plan, ULIPs provide a life cover that protects

your family and lets you invest in the equity market, so you can grow your money.

The best ones to choose are those that include benefits such as fund switching options,

income tax benefits, high returns in the long term, life cover, and loyalty additions.

Note that you, as the investor, will have to bear the risk of the investment.

CHILD PLAN

This is a life insurance product designed to save for your child’s higher education

expenses. In case the parachute doesn’t open when you skydive, it takes care of your

18
child’s education. You can begin by making small investments for a short tenure and

start receiving regular pay-outs for a fixed period, and by the time your child wants to

switch from an engineering to a Doing course, you’ll have the money already ready.

RETIREMENT PLAN

An insurance plan that protects your loved ones in case something unfortunate

happens to you, and covers your retirement plans when you don’t, what’s not to love?

Life insurance can be used as a retirement savings vehicle, a tool to supplement other

specific retirement plans to meet your retirement goals, or as an investment option

that offers dual benefits of life cover as well as growing your wealth.

SAVINGS AND INVESTMENTS

Life insurance can also be considered a great savings and investment tool, especially

if you have set some definite goals. Endowment plans are good savings and

investment options. Similarly, if you want to improve your financial condition,

investment plans offer good returns as they are linked to the market. Compare various

plans to see which ones offer maximum returns.

MONEY-BACK

Instead of getting paid all at once at the end of the term, you have the option of

getting returns in intervals. The frequency and period of pay-outs differ from

company to company and plan to plan. This policy could provide you with money at

certain intervals that can help meet various financial goals (buying a house or car,

children’s marriage, etc). Plus, it has a low risk element and guaranteed returns.

WHOLE LIFE INSURANCE:

This form of insurance has two components –benefits to the loved ones in case

something untoward happens to you and a savings portion called the cash value,

which grows as interest accumulates. Interestingly, you don’t have to pay any tax on

19
investment gains until the funds are withdrawn (also called ‘investment growth on a

tax-deferred basis’). You can emit more payments than the scheduled premium, which

will help you build your cash value. Further, you can reinvest dividends into the cash

value and earn interest. If you wish, you can make a withdrawal or take a loan on

interest. Withdrawals will not impact the death benefits.

INSURANCE SECTOR IN INDIA

Insurance industry in India has seen a major growth in the last decade along with an

introduction of a huge number of advanced products. This has led to a tough

competition with a positive and healthy outcome.

Insurance sector in India plays a dynamic role in the wellbeing of its economy. It

substantially increases the opportunities for savings amongst the individuals,

safeguards their future and helps the insurance sector form a massive pool of funds.

With the help of these funds, the insurance sector highly contributes to the capital

markets, thereby increasing large infrastructure developments in India.

NATURE OF INSURANCE

Following are the main characteristics of insurance which are applicable to all

types of insurance (life, fire, marine and general insurance).

1. Sharing of Risks - Insurance is a device to share the financial losses which may

occur to individual or his family on the happening of certain events

2. Co-operative Device – Insurance is a co-operative device to spread the loss

caused by a particular risk over a large caused by a particular risk over a large

number of persons who are exposed to it and who agree to insure themselves

against the risk.

3. Value of Risk – Risk is evaluated at the time of insurance. There are several

methods of valuing the risk. Higher the risks, higher will be premium

20
4. Payment on Contingency -If the contingency occurs, payment is made; payment

is made only for insured contingency. If there is no contingency, no payment is

made. In life insurance contract, payment is certain because the death or the

expiry of term will certainly occur. In other insurance contract like fire, marine,

the contingency may or may not occur

5. Amount of Payment of Claim - The amount of payment depends upon the value

of loss occurred due to the particular insured risk. The insurance is there upto that

amount. In life insurance insurer pay a fixed sum on the happening of an event or

within a specified time period.

Example – In fire insurance, if fire occurs and half the property is destroyed,

but the whole property is insured, then payment of claim will be made only for

that half building that is destroyed not the whole amount of insured.

6. Insurance is different from Charity - In charity, there is no consideration but

insurance is not given without premium

7. Large number of Insured Person - Insurance is spreading of loss over a large

number of persons. Larger the number of persons, lower the cost of insurance and

amount of premium and incase lower the number of persons, higher the cost of

insurance and amount of premium.

8. Insurance is different from Gambling - In gambling, there is no guarantee of

gain, by bidding the person expose himself to risk of losing. Whereas in

insurance, by getting insured his life and property, he protect himself against the

risk of loss.

21
THE INDIAN INSURANCE SECTOR

The Indian Insurance Sector is basically divided into two categories – Life Insurance

and Non-life Insurance. The Non-life Insurance sector is also termed as General

Insurance. Both the Life Insurance and the Non-life Insurance is governed by the

IRDAI (Insurance Regulatory and Development Authority of India).

The role of IRDA is to thoroughly monitor the entire insurance sector in India and

also act like a custodian of all the insurance consumer rights. This is the reason all the

insurers have to abide by the rules and regulations of the IRDAI.

The Insurance sector in India consists of total 57 insurance companies. Out of which

24 companies are the life insurance providers and the remaining 33 are non-life

insurers. Out which there are seven public sector companies.

Life insurance companies offer coverage to the life of the individuals, whereas the

non-life insurance companies offer coverage with our day-to-day living like travel,

health, our car and bikes, and home insurance. Not only this, but the non-life

insurance companies provide coverage for our industrial equipment’s as well. Crop

insurance for our farmers, gadget insurance for mobiles, pet insurance etc. are some

more insurance products being made available by the general insurance companies in

India.

The life insurance companies have gained an investment prospectus in the recent

times with an idea of providing insurance along with a growth of your savings. But,

the general insurance companies remain reluctant to offer pure risk cover to the

individuals.

22
THE PAST OF INSURANCE SECTOR IN INDIA

In the history of the Indian insurance sector, a decade back LIC was the only life

insurance provider. Other public sector companies like the National Insurance, United

India Insurance, Oriental Insurance and New India Assurance provided non-life

insurance or say general insurance in India.

However, with the introduction of new private sector companies, the insurance sector

in India gained a momentum in the year 2000. Currently, 24 life insurance companies

and 30 non-life insurance companies have been aggressive enough to rule the

insurance sector in India.

But, there are yet many more insurers who are waiting for IRDAI approvals to start

both life insurance and non-life insurance sectors in India.

THE PRESENT OF INSURANCE SECTOR IN INDIA

So far as the industry goes, LIC, New India, National Insurance, United insurance and

Oriental are the only government ruled entity that stands high both in the market share

as well as their contribution to the Insurance sector in India. There are two specialized

insurers – Agriculture Insurance Company Ltd catering to Crop Insurance and Export

Credit Guarantee of India catering to Credit Insurance. Whereas, others are the private

insurers (both life and general) who have done a joint venture with foreign insurance

companies to start their insurance businesses in India.

23
LIFE INSURANCE COMPANIES:

PRIVATE SECTOR COMPANIES

 AEGON Life Insurance Co. Ltd.

 Aviva Life Insurance Co. India Ltd.

 Bajaj Allianz Life Insurance Co. Ltd.

 Bharat AXA Life Insurance Co. Ltd.

 Birla Sun Life Insurance Co. Ltd.

 Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd.

 DHFL Pramerica Life Insurance Co. Ltd.

 Edelweiss Tokio Life Insurance Co. Ltd

 Exide Life Insurance Co. Ltd.

 Future Generali India Life Insurance Co. Ltd.

 HDFC Standard Life Insurance Co. Ltd.

 ICICI Prudential Life Insurance Co. Ltd.

 IDBI Federal Life Insurance Co. Ltd.

 India First Life Insurance Co. Ltd

 Kodak Mahindra Old Mutual Life Insurance Ltd.

 Max Life Insurance Co. Ltd.

 PNB MetLife India Insurance Co. Ltd.

 Reliance Life Insurance Co. Ltd.

 Sahara India Life Insurance Co. Ltd.

 SBI Life Insurance Co. Ltd.

 Shriram Life Insurance Co. Ltd.

 Star Union Dai-Ichi Life Insurance Co. Ltd.

 Tata AIA Life Insurance Co. Ltd.

24
GENERAL INSURANCE COMPANIES:

PRIVATE SECTOR COMPANIES

 Aditya Birla Health Insurance Co. Ltd.

 Bajaj Allianz General Insurance Co. Ltd.

 Bharti AXA General Insurance Co.Ltd.

 Cholamandalam General Insurance Co. Ltd.

 Future Generali India Insurance Co.Ltd.

 HDFC ERGO General Insurance Co. Ltd.

 ICICI Lombard General Insurance Co. Ltd.

 IFFCO-Tokio General Insurance Co. Ltd.

 Kotak General Insurance Co. Ltd.

 L&T General Insurance Co. Ltd.

 Liberty Videocon General Insurance Co. Ltd.

 Magma HDI General Insurance Co. Ltd.

 Raheja QBE General Insurance Co. Ltd.

 Reliance General Insurance Co. Ltd.

 Royal Sundaram Alliance Insurance Co. Ltd

 SBI General Insurance Co. Ltd.

 Shriram General Insurance Co. Ltd.

 TATA AIG General Insurance Co. Ltd.

 Universal Sompo General Insurance Co.Ltd.

25
HEALTH INSURANCE COMPANIES

 Apollo Munich Health Insurance Co.Ltd.

 Star Health Allied Insurance Co. Ltd.

 Max Bupa Health Insurance Co. Ltd.

 Religare Health Insurance Co. Ltd.

 Cigna TTK Health Insurance Co. Ltd.

This collaboration with the foreign markets has made the Insurance Sector in India

only grow tremendously with a high current market share. India allowed private

companies in insurance sector in 2000, setting a limit on FDI to 26%, which was

increased to 49% in 2014. IRDAI states – Insurance Laws (Amendment) Act, 2015

provides for enhancement of the Foreign Investment Cap in an Indian Insurance

Company from 26% to an Explicitly Composite Limit of 49% with the safeguard of

Indian Ownership and Control.

Private insurers like HDFC, ICICI and SBI have been some tough competitors for

providing life as well as non-life products to the insurance sector in India.

THE FUTURE OF INSURANCE SECTOR IN INDIA

Though LIC continues to dominate the Insurance sector in India, the introduction of

the new private insurers will see a vibrant expansion and growth of both life and non-

life sectors in 2017. The demands for new insurance policies with pocket-friendly

premiums are sky high. Since the domestic economy cannot grow drastically, the

insurance sector in India is controlled for a strong growth.

With the increase in income and exponential growth of purchasing power as well as

household savings, the insurance sector in India would introduce emerging trends like

product innovation, multi-distribution, better claims management and regulatory

trends in the Indian market.

26
The government also strives hard to provide insurance to individuals in a below

poverty line by introducing schemes like the

 Pradhan Mantri Suraksha Bima Yojana (PMSBY),

 Rashtriya Swasthya Bima Yojana (RSBY) and

 Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY).

Introduction of these schemes would help the lower and lower-middle income

categories to utilize the new policies with lower premiums in India.

With several regulatory changes in the insurance sector in India, the future looks

pretty awesome and promising for the life insurance industry. This would further lead

to a change in the way insurers take care of the business and engage proactively with

its genuine buyers.

Some demographic factors like the growing insurance awareness of the insurance,

retirement planning, growing middle class and young insurable crowd will

substantially increase the growth of the Insurance sector in India.

INSURANCE IN INDIA: THE JOURNEY FROM ORIGIN TO

EVOLUTION

In India, life insurance has been an integral part of most people's lives. For some, it is

an investment avenue while others see it as a safety net to provide for their family's

future in case of untimely death.

In India, life insurance has been an integral part of most people's lives. For some, it is

an investment avenue while others see it as a safety net to provide for their family's

future in case of untimely death. In urban areas, life insurance is almost considered a

given, with people taking multiple policies at various stages of their life. Initial steps

1818 saw the advent of life insurance business in India with the establishment of the

Oriental Life Insurance Company in Calcutta.

27
This Company however failed in 1834. In 1829, the Madras Equitable had begun

transacting life insurance business in the Madras Presidency. 1870 saw the enactment

of the British Insurance Act and in the last three decades of the nineteenth century, the

Bombay Mutual (1871), Oriental (1874) and Empire of India (1897) were started in

the Bombay Residency. This era, however, was dominated by foreign insurance

offices which did good business in India, namely Albert Life Assurance, Royal

Insurance, Liverpool and London Globe Insurance and the Indian offices were up for

hard competition from the foreign companies.

First regulation In 1914, the Government of India started publishing returns of

Insurance Companies in India. The Indian Life Assurance Companies Act, 1912 was

the first statutory measure to regulate life business. In 1928, the Indian Insurance

Companies Act was enacted to enable the Government to collect statistical

information about both life and non-life business transacted in India by Indian and

foreign insurers including provident insurance societies. In 1938, with a view to

protecting the interest of the Insurance public, the earlier legislation was consolidated

and amended by the Insurance Act, 1938 with comprehensive provisions for effective

control over the activities of insurers.

Nationalization happens The Insurance Amendment Act of 1950 abolished Principal

Agencies. However, there were a large number of insurance companies and the level

of competition was high. There were also allegations of unfair trade practices. The

Government of India, therefore, decided to nationalize insurance business.

Sector reopened An Ordinance was issued on 19th January, 1956 nationalizing the

Life Insurance sector and Life Insurance Corporation came into existence in the same

year. The LIC absorbed 154 Indian, 16 non-Indian insurers as also 75 provident

28
societies-245 Indian and foreign insurers in all. The LIC had monopoly till the late

90s when the Insurance sector was reopened to the private sector.

This millennium has seen insurance come a full circle in a journey extending to nearly

200 years. The process of re-opening of the sector had begun in the early 1990s and

the last decade and more has seen it been opened up substantially. In 1993, the

Government set up a committee under the chairmanship of RN Malhotra, former

Governor of RBI, to propose recommendations for reforms in the insurance sector.

Basic recommendations The objective was to complement the reforms initiated in

the financial sector. The committee submitted its report in 1994 wherein, among other

things, it recommended that the private sector be permitted to enter the insurance

industry. They stated that foreign companies should be allowed to enter by floating

Indian companies, preferably a joint venture with Indian partners.

IRDA constituted Following the recommendations of the Malhotra Committee

report, in 1999, the Insurance Regulatory and Development Authority (IRDA) was

constituted as an autonomous body to regulate and develop the insurance industry.

The IRDA was incorporated as a statutory body in April, 2000. The key objectives of

the IRDA include promotion of competition so as to enhance customer satisfaction

through increased consumer choice and lower premiums, while ensuring the financial

security of the insurance market.

The role of IRDAIRDA opened up the market in August 2000 with the invitation for

application for registrations. Foreign companies were allowed ownership of up to

26%. The Authority has the power to frame regulations under Section 114A of the

Insurance Act, 1938 and has from 2000 onwards framed various regulations ranging

from registration of companies for carrying on insurance business to protection of

29
policyholders' interests. Today there are 23 life insurance companies operating in the

country.

Growth rate The insurance sector is a colossal one and is growing at a speedy rate of

15-20%. Together with banking services, insurance services add about 7% to the

country's GDP. A well-developed and evolved insurance sector is a boon for

economic development as it provides long- term funds for infrastructure development

while strengthening risk taking ability of the country.

WHAT ARE THE FUNCTION OF INSURANCE

The function of insurance may vary with its nature and types. It means the functions

of fire or marine insurance may differ from that of life insurance etc. Today I am

going to discuss some common function of the insurance.

PROVIDING FINANCIAL LOSSES

Insurance provides assurance for the compensation of pre-decided and accidental

financial losses against the premium paid by the insured.

30
REDUCING FINANCIAL LOSSES

Human beings are exposed to different kinds of risks in their personal as well as

business life. Such risks may cause great financial loss. Insurance acts as a

mechanism to reduce or eliminate the financial loss due to various risks by forecasting

the chances of such happenings and suggesting for their controlling measures.

MOBILIZATION OF CAPITAL

Insurance accumulates fund in terms of insurance premium from the parties willing to

get secured from the financial losses. Compensation is made to the insured who are

actually suffered and productive sectors. Hence, insurance accumulates fun and

mobilized into different areas.

MAINTAINING FINANCIAL STABILITY

Risks and uncertainties create instability in the financial sector. Insurance companies

help to maintain financial stability by assuring for the compensation of the losses

caused by various risks and thus, promotes the performance efficiency, which leads to

financial stability.

WHAT ARE THE ADVANTAGES OF INSURANCE

ASSURES FOR FINANCIAL COMPENSATION

Insurance provides financial security to the insured. It gives guarantee of

compensation against large financial losses in return of small premium.

REDUCTION OF RISKS

Human beings are exposed to different kinds of financial risks, which may cause large

financial losses. It is not possible to eliminate the risks but it can be forecasted and

reduced by applying some precautionary measures. Insurance helps in reducing risks

31
by suggesting for pre caution measures on one side and by sharing the losses to a

group of person who has agreed to join the common pool.

ENCOURAGEMENT TO SAVING AND INVESTMENT

In the insurance agreement, the insured has to pay a certain regular premium to the

insurer in return to the compensation of the probable future loss or compensation at

old age or compensation after his/her death. Insurance is thus a method of collecting

saving from the parties willing to get secured from the financial risks. Hence, it

encourages persons to make regular savings.

BASIS OF CREDIT

An insured can easily get loan by pledging insurance policy as a security from the

insurance company itself. Besides, financial institutions grant credit facilities on the

pledge of the properties which are being insured.

MAINTAINS ECONOMIC STABILITY

Financial risks and uncertainties pushes the entire economy into instability. It is a very

bad sign to total business and social sectors. Insurance assures the compensation of

the financial losses caused by the specified future events and considerably helps in

maintaining economic stability.

PROMOTES BUSINESS ACTIVITIES

Business sector is more risky sector. The chances of fire in the go down, loss of stocks

by theft, explosion in the ship, train or plane etc. are more frequent in this sector.

Insurance takes away these risks and promotes and develops business activities in

consideration to a nominal charge i.e premium.

32
PROVIDES EMPLOYMENT OPPORTUNITIES

As insurance has become business in the modern day business world, hundreds of

entrepreneurs and thousands of employees have been engaging in this line. Hence, by

establishing and developing insurance companies, it has provided employment

opportunities to thousands of people as per their qualification and calibre.

REASONS FOR CLAIM REJECTION

Your insurer can reject a life insurance claim on grounds of:

Misrepresentation of actual information

Non-disclosure of complete information

Fraud

Apart from these, there are other grounds on which insurance companies can reject a

claim you make. Here are some of them

POLICY DOES NOT COVER SPECIFIC SITUATION

Assuming you are 25 years old and take a whole life plan; you will receive a lump

sum payment at the age of 45. However, if you make a claim at 40 because of an

emergency, your claim will not be entertained.

INFORMATION INCORRECT OR MISLEADING

Every policy has an ‘in contestability period’, during which the insurer can dispute

information provided in the application. For instance, your insurance company can

refuse the claim if you said you were a non-smoker, but you turn out to be one.

DISABILITY AND CRITICAL ILLNESS

Life insurance policies do not generally cover disability and critical illnesses, unless

you buy disability and critical illness riders as well.

33
MINOR BENEFICIARY

The money will be paid only to a trustee designated by you (the insured) and not to

the spouse or child (the beneficiary) if he or she is under 18 years.

INSURED LIVES BEYOND TERM EXPIRY

Some policies are only valid until the insured turns a certain age or for a certain

number of years. The policy becomes invalid if you outlive this tenure.

SUICIDE

Although suicide cases qualify for insurance pay outs, there is a catch. The insurance

sector regulator, IRDAI, has made certain changes in the suicide clause with effect

from January 1, 2014. Policies issued prior to this date will not be entertained under

the old clause. As for those policies that have been taken out later, we’ll come to that

a little later.

DEATH IN A WAR

This is a common exclusion. Many policies do not cover accidental death in a war or

during active military service.

STAY IN A RESTRICTED COUNTRY

People visiting designated ‘restricted countries’ or are vulnerable to violence, say

Syria, beware: anything untoward in such places are usually not covered.

DEATH IN A HIGH-RISK ACTIVITY

Sure, you have only one life to live and you should make the most of it. But partaking

in extreme sports like skydiving is not generally covered by an insurance policy. In

fact, an insurer can reject a death claim if you were not wearing a helmet while riding

a motorcycle (yup, it is a high-risk activity).

34
MISMATCHING POLICY

You cannot supersede the contract signed in a policy. So, if you have your wife’s

name on the insurance policy as the beneficiary and you get divorced and remarry,

your first wife will be entitled to the benefits in case something happens to you. You

can avoid such a situation by updating the beneficiary name in your policy.

UNPAID PREMIUM

This is the most common ground for pay out refusal. If the premium is not paid within

30 days after the due date, the policy is considered lapsed.

WHAT IS NOT COVERED UNDER LIFE INSURANCE?

CERTAIN ACCIDENTAL DEATHS

Wondering why this is mentioned here when term plans provide coverage in case of

death due to accidents? It is true that many term life plans have additional accidental

death benefit riders that assure extra pay out on top of the basic sum assured in case of

accidental deaths. However, there are exceptions

Insurance companies will not entertain claims if you, the insured person, meet with an

accident while driving or walking down a busy street and are under the influence of

alcohol or any narcotics

Loss of life while driving during a criminal act will also lead to claim rejection

Life insurance plans exclude anything untoward that may happen during participation

in adventure sports such as skydiving, parachuting, rafting, bungee-jumping

35
SUICIDE

As mentioned above, according to IRDAI notification effective January 1, 2014, the

beneficiary is eligible to receive 80% of the premium that has already been paid if the

insured commits suicide within 12 months of policy commencement – this is for non-

linked policies. For linked plans, the pay-out is 100%.

However, the policy will be considered terminated if the insured commits suicide

after completion of a year of the policy

Bear in mind that some life insurance companies may not provide coverage for

suicidal deaths. So, study the terms and conditions carefully, and understand the

inclusions and exclusions before making your purchase.

SELF-INFLICTED INJURIES

Self-harming even with no intention of suicide gives the insurance company grounds

to reject claims made by the beneficiary.

STD

Insurance companies usually do not accept claims if the deceased was afflicted by

sexually transmitted diseases (STD) such as HIV/AIDS.

INTOXICATION

Insurance companies will not release death benefits for the beneficiary if the insured

person dies from an overdose of drugs or alcohol. It is quite common for insurers to

put pay outs on hold until the autopsy report on unnatural deaths is released.

36
MURDER

What happens if the insured person is murdered by the beneficiary? If investigations

reveal that the nominee/beneficiary was involved in the crime, the insurance company

will put the claim on hold– if not outright reject it– till the accused is cleared of the

charges.

NATURAL CALAMITY

Different regions in India are vulnerable to different natural calamities such as floods,

earthquakes, landslides, typhoons, and even tsunamis. If an accident happened due to

any such natural calamity, the insurance company will not issue any death benefits.

However, you can avoid this by adding a rider to the base plan to take care of the

beneficiary in case of loss of life from such a calamity.

INCOME TAX BENEFIT ON LIFE INSURANCE:

80C AND 10D

Life insurance is one of the primary and essential requirements of ensuring a

financially balanced and comfortable life for your loved ones. The capital benefits

that come with life insurance help your family build a safe and safeguarded future,

even in your absence. Moreover, under Section 80C and 10D of the Income Tax Act,

there are income tax benefits on life insurance. Under section 80C, premiums that you

pay towards a life insurance policy qualify for a deduction up to ₹1.5 lakh, while

Section 10(10D) makes income on maturity tax-free if the premium is not more than

10% of the sum assured or the sum assured is at least 10 times the premium.

But if the sum assured is less than 10 times the premium—for instance you pay Rs.1

lakh as premium for a sum assured of Rs.5 lakh—you will get a deduction on the

premium up to 10% of the sum assured. In the example, your deduction will be

Rs.50,000 and not Rs.1 lakh.

37
Also, in case of death, the sum assured that’s paid to the nominee continues to be tax-

free. But, on maturity, since the policy doesn’t meet the qualifying criterion

for income tax benefit, the income will be taxed at the marginal tax rate.

As per Section 80C, the premium paid towards life insurance policies up to the

maximum limit of Rs.1,50,000 is eligible for tax deduction and deductions are

applicable if the amount of premium paid in a financial year is 20% of the sum

assured amount of the policy. This is related only to the life insurance policies that

have been issued before 31st March 2012.

For policies which were issued after 1 st April 2012, the tax deductions are applicable

of the amount of premium paid in a financial year is 10% of the sum assured.

Under section 80C(5) if the insurance policy holder voluntarily surrenders his policy

or in case the policy is terminated before 2 years from the date of commencement of

policy, then the insured will not receive any benefits on the premium paid, offered

under section 80C of Income Tax Act.

Under Section 10(10D) of Income Tax Act, 196, the sum assured amount plus bonus

(if any) paid on surrender or maturity of the policy or in case of death of the insured in

entirely tax-free for the receiver. Some of the important points of section 10(10D) of

tax deductions are:

Any amount payable to the insured under life insurance policies is applicable for tax

deduction. The amount payable can maturity benefits and death benefits, allocated

sum by way of bonus, surrender value and the survival benefit. Section 10(10D)

deduction is also applicable to gains and proceeds from a ULIP and the benefit on

maturity proceeds is offered when the premium paid towards the policy is not more

than 10% of the sum assured amount.

38
Any maturity amount of life insurance policy or bonus amount received by the

beneficiary of the policy in case of demise of the insured is totally exempted from tax

deduction.

In fact, in order to ensure compliance, if the maturity proceeds exceed Rs.1 lakh, then

a tax deduction at source (TDS) will apply and the insurer will deduct 1% as TDS

(Tax Deducted at Source) if the PAN of the policyholder is available.

TERMS OF SECTION 10(10D) OF THE INCOME TAX ACT, 1961

Tax benefits under Section 10(10D) of the Income Tax Act, 1961 can be claimed only

on the following terms and conditions:

 Tax deductions under Section 10(10D) of the Income Tax Act, 1961, is applicable

on any sum received under a life insurance plan i.e. Death Benefit or maturity

Benefit or Bonus received from life insurance policies

 Payout that is not eligible for tax deductions under Keyman Insurance Policy are

eligible for deductions under this section

 Premium paid during any particular year during the policy term cannot be more

than 20% of the sum assured for life insurance policies bought between 1st April

2003 and 31st March, 2012

 For policies purchased after 1st April 2012, the premium payment cannot be more

than 10% of the sum assured

 The insurance premium for any year during the policy tenure should not exceed

15% of the sum assured. Besides, it also should not have been purchased on or

after 1st April 2013. Also, the insurance policy must be for the life of any

individual who meets the following criteria:

39
INSURANCE REGULATORY AND DEVELOPMENT

AUTHORITY

The Insurance Regulatory and Development Authority of India (IRDAI) is an

autonomous, statutory body tasked with regulating and promoting the insurance

and re-insurance industries in India. It was constituted by the Insurance Regulatory

and Development Authority Act, 1999, an Act of Parliament passed by the India. The

agency's headquarters are in Hyderabad, Telangana, where it moved from Delhi in

2001.

IRDAI is a 10-member body including the chairman, five full-time and four part-time

members appointed by the government of India.

40
FUNCTIONS:

The functions of the IRDAI are defined in Section 14 of the IRDAI Act, 1999, and

include:

 Issuing, renewing, modifying, withdrawing, suspending or cancelling registrations

 Protecting policyholder interests

 Specifying qualifications, the code of conduct and training for intermediaries and

agents

 Specifying the code of conduct for surveyors and loss assessors

 Promoting efficiency in the conduct of insurance businesses

 Promoting and regulating professional organisations connected with the insurance

and re-insurance industry

 Levying fees and other charges

 Inspecting and investigating insurers, intermediaries and other relevant

organisations

 Regulating rates, advantages, terms and conditions which may be offered by

insurers not covered by the Tariff Advisory Committee under section 64U of the

Insurance Act, 1938 (4 of 1938)

 Specifying how books should be kept

 Regulating company investment of funds

 Regulating a margin of solvency

 Adjudicating disputes between insurers and intermediaries or insurance

intermediaries

 Supervising the Tariff Advisory Committee

 Specifying the percentage of premium income to finance schemes for promoting

and regulating professional organisations

41
 Specifying the percentage of life- and general-insurance business undertaken in

the rural or social sector

 Specifying the form and the manner in which books of accounts shall be

maintained, and statement of accounts shall be rendered by insurers and other

insurer intermediaries.

MARKET ANALYSIS AND BUYER BEHAVIOUR

A market analysis is an assessment, which allows you to determine how suitable a

particular market is for your industry. You can use market analysis to evaluate your

current market, or look at new markets.

Whether you are a start-up, looking to expand, or re-evaluating your current market, a

market analysis helps you to identify the attractiveness of a market. It also detects

current and future risks of operating in that location.

Market analysis provides you with a holistic or well-rounded picture of the markets

you are interested in operating in. The components of the analysis include several

evaluation tools, including a discussion of your industry and its outlook in the market.

It also analyzes the target market, conducts a competitive analysis, and identifies

cultural and legal regulations.

CONDUCTING MARKET ANALYSIS

When you conduct a market analysis, you are going to look at several characteristics

of the market you are interested in entering. You are also going to determine how

suitable your industry is for the market.

INDUSTRY DESCRIPTION AND OUTLOOK

Think back to the coffee shop. When preparing to expand, you will want to conduct

an in-depth analysis of your industry and consider what the future of your industry

looks like. For example, what does the coffee shop industry look like and how large is

42
the coffee industry. You may also want to look at the growth rate of the industry, and

the anticipated rate of growth over the next few years.

In short, the industry description and outlook takes into consideration:

 Definition of your industry (what do you offer)

 Size of your industry

 Rate of growth

 Potential for growth

 Trends in the industry

 Sustainability of your industry

These measures provide a broad overview of your industry and its potential for

growth and profitability.

TARGET MARKET

Once you have a broad picture of what your industry looks like and what its

capabilities are, you want to identify your target market. The target market is the

specific population you want to market your products to.

 Who do you want to sell to?

 What age group do you want to sell to?

 What is the general level of income of your target market?

 Where does your target market live?

You want to dig in to specifics of which the population you are targeting is, and what

they desire out of the products you are offering.

 Do your customers like chocolate mochas, or do they prefer black coffee?

 Do they live fast-paced lives, or do they have 20 or 30 minutes each morning to

enjoy their coffee?

 Where does your target market live?

43
 How large is their population?

When conducting a target market analysis, you will want to find out as many specific

details as you can about your target market.

 LIFE INSURATION CORPORATION OF INDIA (abbreviated as LIC) is an

Indian government owned insurance and investment corporation. It is under the

owned insurance and investment corporation.

 It is under the ownership of Ministry of Finance, Government of India.

 The Life insurance Corporation of India was established on September 1, 1956,

when the Parliament of India passed the Life Insurance of India Act that

nationalized the insurance industry in India. Over 245 insurance companies and

provident societies were merged to create the state-owned Life Insurance

Corporation of India.

 As of 2019, Life Insurance Corporation of India had total life fund of ₹28.3

trillion. The total value of sold policies in the year 2018–19 is ₹21.4 million. Life

44
 Insurance Corporation of India settled 26 million claims in 2018–19. It has 290

million policy holders.

MISSION OF LIC: -

“Ensure and enhance the quality of people through financial security by providing

products and services of aspired attributes with competitive returns, and by rendering

resources for economic development.

” VISION OF LIC: -

“A trans-nationally competitive financial conglomerate of significance to societies

and pride of India.”

IPO:-

Finance Minister Nirmala Sitharaman announced a proposal to conduct an initial

public offering for LIC in the 2021 Union Budget. The IPO is expected to be held in

FY22. The Government of India will remain the majority shareholder after the public

listing. Ten percent of shares are proposed to be allotted to existing LIC

policyholders. In year 2021, government of India had proposed to significantly

enhance the authorised capital of Life Insurance Corporation of India (LIC), to INR

250bn ($3.4bn) to facilitate its public listing scheduled for the next fiscal year which

will begin on 1st April.

STRUCTURE:-

The LIC's executive board consists of Chairman, currently M R Kumar, and

Managing Directors, Vipin Anand, T. C. Suseel Kumar, Mukesh Kumar Gupta and

Raj Kumar The Central Office of LIC is based out of Mumbai which sits The

Chairman, all four Managing Directors, and all Executive Directors (Department

Heads). LIC has a total of 8 Zonal Offices namely Delhi, Chennai, Mumbai,

Hyderabad, Kanpur, Kolkata, Bhopal & Patna.

45
OPERATIONS -

Today LIC functions with 2048 fully computerized branch offices, 8 zonal offices,

around 113 divisional offices, 2,048 branches and 1408 satellite offices and the

Central Office; it also has 73 customer zones and 25 metro-area service hubs located

in different cities and towns of India. It also has a network of 1,537,064 individual

agents, 342 Corporate Agents, 109 Referral Agents, 114 Brokers and 42 Banks for

soliciting life insurance business from the public. The LIC has 22 departments each

headed by an Executive Director namely Marketing, Bank assurance (B&AC),

Corporate Communication, Personnel, CRM, Direct Marketing, E&OS, F&A,

IT/BPR, Inspection, Investment, SBU/Estates, Investment Operations, P&GS,

Actuarial, Chairman Sect, F&A, Micro Insurance, RTI, HRD, Engineering, and

Vigilance. The LIC follows a horizontal line of command & vertical line of

command, while each department is headed by an Executive Director, the Zonal

offices are headed by a Zonal Manager who oversees all the departments & divisions

of the Zone – making him de facto CEO of the Zone. The zonal departmental heads

are Regional Managers. Divisions are headed by Sr. Divisional Manager(I/C) who

oversees all the departments & branches of the division. There are 3 layers of

Horizontal Management namely Senior Divisional Manager(I/C), Zonal Manager(I/C)

& the Chairman/MD. There are also 3 layers of vertical management namely

Managers of Divisions, Regional Managers of Zonal Office & the Executive Directors

of Central office. Horizontal Management is considered key managers of the

corporation.

46
HOLDINGS:-

LIC invests in sectors such as banks, cement, chemicals and fertilizers, electricity and

transmission, electrical and electronics, engineering, construction and infrastructure,

fastmoving consumer goods, finance and investments, healthcare, hotels, information

technology, metals and mining, motor vehicles, and ancillaries, oil and natural

resources, retail, textiles, transportation, and logistics. Among the Nifty companies,

LIC's holding in terms of value in 2012 was estimated to be the highest in ITC

(₹27,326 crores), followed by RIL (₹21,659 crores), ONGC (₹17,764 crores), SBI

(₹17,058 crores), L&T (₹16,800 crores), and ICICI Bank (₹10,006 crores). The share

price drop in ITC on 18 July 2017 had caused LIC a major loss of around 7000 crores

during the financial year. LIC also holds a 51% stake in IDBI Bank, making it the

only insurer in India to own a bank, since regulations prohibit insurers from holding

more than 15% stake in any company, LIC will have to decide a timeline for paring

its stake in IDBI bank; also LIC may have to pare its stake in LIC Housing Finance

Ltd as a company cannot be the promoter of two finance companies carrying out same

housing finance business in India.

47
COMPANY PROFILE

48
 COMPANY PROFILE

PNB MetLife India Insurance Company Limited

Type Subsidiary

Industry Financial services

Founded 2001; 22 years ago

Headquarters Mumbai, India

Area served India

Key people Ashish Kumar Srivastava (MD & CEO)

Products Life insurance

Employee benefits
Investment management

Number of employees 10,444+

Parent Punjab National Bank

MetLife

Website www.pnbmetlife.com

PNB MetLife India Insurance Company Limited (PNB MetLife) established in 2001

is one of the leading life insurance companies in India. PNB MetLife shareholders

49
include MetLife International Holdings LLC (MIHL), Punjab National Bank (PNB),

Jammu & Kashmir Bank Limited (JKB), and M. Pallonji and Company Private

Limited, as well as other private investors. MIHL and PNB are the majority

shareholders in the company. The company serves customers in over 7000 locations

providing a range of health, life and retirement insurance products.

HISTORY

PNB MetLife was initially launched as MetLife India Insurance Company Limited in

2001. In 2011, PNB acquired a 30% stake in MetLife India Insurance. On 7

December 2012, PNB and MetLife India approached the Competition Commission of

India (CCI). In January 2013, PNB received full approval to purchase a 30% stake in

MetLife India Insurance. This new private sector life insurer was re-branded as PNB

MetLife India Ltd.

PNB MetLife now has over 150 branches across the country and serves customers at

more than 7,000 locations through its bank partnerships with PNB, Jammu and

Kashmir Bank Limited (JKB), and Karnataka Bank Limited.

50
KEY PEOPLE

Name of key person Designation

Ashish Kumar Srivastava Managing director & CEO

Asha Murali Appointed actuary

Khalid Ahmad Chief financial officer

Sameer Bansal Chief distribution officer

Samrat Das Chief operating officer

Sanjay Kumar Chief investment officer

Sarang Cheema Chief compliance officer

Shishir Agarwal Chief human resource officer

Vineet Maheshwari Chief strategy officer

Motty John Chief legal officer & head of board affairs

Viraj Taneja Chief of internal audit

51
PRODUCTS AND SERVICES

Some key plans include:

PNB MetLife – Mera Term Plan Plus – Term Plan

PNB MetLife – Mera Guaranteed Future Plan

PNB MetLife – Century Plan

PNB MetLife – Goal Ensuring Multiplier

PNB MetLife – Guaranteed Goal Plan

PNB MetLife – Super Saver Plan

PNB MetLife – Immediate Annuity Plan

PNB MetLife – Grand Assured Income Plan

AWARDS

2016: PNB MetLife won the ‘Website of the Year’ award at the E-Commerce Summit

& Awards in Mumbai.

2016: PNB MetLife won the ‘Celent Model Insurer Asia’ award for the most

responsive eCommerce platform on a mobile.

52
2016: PNB MetLife won honors at the prestigious Asia Training & Development

Excellence Awards 2016 held in Singapore in two categories – Best Education

Training Campaigns and Programs and Best Sales Development Program.

OTHER ACHIEVEMENTS

In August 2014, the company launched its corporate social responsibility program to

support the education of children in Karnataka. The project, which is part of the

existing Rajiv Gandhi Crèche Scheme, supports the government's priority of

strengthening and supporting the 30 crèche centers.

On the occasion of World Health Day, PNB MetLife announced the fifth edition of

Guinness Record-holding PNB MetLife Satara Hill Half Marathon 2016.

A new digital campaign, including a 75-second film conceptualized by McCann

Erickson, was launched by PNB MetLife in June 2016.

Punjab National Bank (PNB) is an Indian financial services company based in New

Delhi, India. Founded in 1895, the bank has over 5,800 branches and over 6,000

ATMs across 764 cities. It serves over 80 million customers. Punjab National Bank is

one of the Big four banks of India, along with the state bank of India, ICICI bank and

Bank of Baroda. It is the third largest bank of India in terms of assets size. The bank

has been ranked 248th biggest in the world by Banker’s Almanac. PNB has its

banking subsidiary in the UK, as well as branches in Hong Kong, Dubai, and Kabul.

It has representative offices in Almaty (Kazakhstan), Dubai, Shanghai (China), Oslo

(Norway) and Sydney (Australia). Punjab National Bank, one of the leading

nationalized Banks of the country has a national presence through a widespread

network of over 5600+ Service Out-Lets (SOLs) in branches/Offices spread across the

country. It has established specialized branches to cater to the needs of key customer

segments in the core areas of Agriculture, Industrial Finance and Foreign Exchange.

53
The bank has already implemented a Core Banking Solution (Financial), which

provides anywhere any time banking to all its customers of more than 5600 Service

Outlets in more than 2700 Centers across the country. Internet Banking Service is

being provided to the customers of these Service Outlets / branches. Complementing

these services, the bank also offers a modern, competitive full service to its

commercial, retail and corporate customers through its service outlets like Branches /

ATMs / Extension counters etc. The design of the network enables the bank to have

operational capabilities, which is at par with international business practices. Various

Mail Servers have been located at different controlling offices to provide corporate

email facility to its staff.

Punjab National Bank (PNB) is an Indian financial services company based in New

Delhi, India. Founded in 1895, the bank has over 5,800 branches and over 6,000

ATMs across 764 cities. It serves over 80 million customers. Punjab National Bank is

one of the Big four banks of India, along with the state bank of India, ICICI bank and

Bank of Baroda. It is the third largest bank of India in terms of assets size. The bank

has been ranked 248th biggest in the world by Banker’s Almanac. PNB has its

banking subsidiary in the UK, as well as branches in Hong Kong, Dubai, and Kabul.

It has representative offices in Almaty (Kazakhstan), Dubai, Shanghai (China), Oslo

(Norway) and Sydney (Australia). Punjab National Bank, one of the leading

nationalized Banks of the country has a national presence through a widespread

network of over 5600+ Service Out-Lets (SOLs) in branches/Offices spread across the

country. It has established specialized branches to cater to the needs of key customer

segments in the core areas of Agriculture, Industrial Finance and Foreign Exchange.

The bank has already implemented a Core Banking Solution (Financial), which

provides anywhere any time banking to all its customers of more than 5600 Service

54
Outlets in more than 2700 Centers across the country. Internet Banking Service is

being provided to the customers of these Service Outlets / branches. Complementing

these services, the bank also offers a modern, competitive full service to its

commercial, retail and corporate customers through its service outlets like Branches /

ATMs / Extension counters etc. The design of the network enables the bank to have

operational capabilities, which is at par with international business practices. Various

Mail Servers have been located at different controlling offices to provide corporate

email facility to its staff.

ABOUT THE BANK:

 Distinction of being the first Indian bank to have been started solely

with Indian capital.

 Largest branch network in India- 4525 offices including 432 extension

counters and more than 58300 employees spread throughout the

country.

 Serves over 3.5 cores customers.

 Strong correspondent banking relationship with more than 217

international banks of the world.

 More than 50 renowned international banks maintain their rupees

accounts with PNB.

55
VISION OF THE BANK:

“To be Leading Global Bank with Pan India footprints and become a household brand

in the IndoGangetic Plains, providing entire range of financial products and services

under one roof.”

Mission of the Bank:

“Banking for the unbanked”

Punjab National Bank-First Office at Ganpatrai Road, Lahore

PNB was founded in the year 1895 at Lahore (presently in Pakistan) as an off-shoot of

the Swadeshi Movement. Among the inspired founders were:-

a. Sardar Dayal Singh Majithia,

b. Lala HarKishen Lal

c. Lala Lalchand,

d. Shri Kali Prosanna Roy,

56
e. Shri E.C. Jessawala,

f. Shri Prabhu Dayal,

g. Bakshi Jaishi Ram, and

h. Lala Dholan Doss.

With a common missionary zeal they set about establishing a national bank; the first

one with Indian capital — owned, managed and operated by the Indians for the

benefit of the Indians. The Lion of Punjab, Lala Lajpat Rai, was actively associated

with the management of the Bank in its formative years. The Bank made steady

progress right from its inception. It has shown resilience to tide over many a crisis. It

withstood the crisis in banking industry of 1913 and the severe depression of the

thirties.

With the passage of time the Bank grew to strength spreading its wings from one

corner of the country to another. Some smaller banks like, The Bhagwan Dass Bank

Limited, Universal Bank of India, The Bharat Bank Limited, The Indo-Commercial

Bank Limited, The Hindustan Commercial Bank Limited and The Nedungadi Bank

were brought within its fold. PNB has the privilege of maintaining accounts of the

illustrious national leaders like Mahatma Gandhi, Shri Jawaharlal Nehru, Shri Lal

Bhadhur Shashtri, and Shrimati Indira Gandhi besides the account of the famous

Jalianwala Bagh Committee. Nationalization of the 14 major banks on 19th July 1969

was major step for the banking industry. PNB was amongst these. As a result, banking

was given new direction and thrust.

57
TIMELINE OF PNB

1895:- PNB established in Lahore.

1904:- PNB established branches in Karachi and Peshawar. 1939:-PNB acquired

Bhagwan Dass Bank Limited.

1947:-Partition of India and Pakistan at Independence. PNB lost its premises in

Lahore but continued to operate in Pakistan. 1960:- PNB amalgamated Indo-

Commercial bank limited (established in 1933) in a rescue.

1961:-PNB acquired Universal Bank of India.

1963:-The Government of Burma nationalized PNB’s branch in Rangoon (Yangon).

1965:- After the Indo-Pak war the government of Pakistan seized all the offices in

Pakistan of Indian banks, including PNB's head office, which may have moved to

Karachi. PNB also had branches in East Pakistan (Bangladesh).

1969:- The Government of India nationalized PNB and 13 other major banks on 19th

July, 1969.

58
1978:-PNB opened branch in London. 1986:- The Reserve Bank of India required

PNB to transfer its London branch to State Bank of India after the branch was

involved in a fraud scandal.

1988:- PNB acquired Hindustan Commercial Bank Limited in a rescue.

1993:- PNB acquired New Bank of India, which the Government of India had

nationalized in 1980.

1998:- PNB set up a representative office in Almaty, Kazakhstan.

2003:- PNB took over Nedungadi Bank (established the bank in 1899), the oldest

private sector bank in Kerala. It was incorporated in 1913 and in 1965 had acquired

selected assets and deposits of the Coimbatore National Bank. At the time of the

merger with PNB, Nedungadi Bank's shares had zero value, with the result that its

shareholders received no payment for their shares.

59
AWARDS WON DURING THE YEAR 2013-14:-

1. Punjab national bank has been declared winner of golden peacock innovative

product/service award for the year 2014.

2. PNB awarded niryat bandhu bronze trophy.

3. Vigilance Excellence Award 2013-14

4. PNB Received Excellent Performance in Lending under PMEGP Scheme award.

5. 2nd prize of Indira Gandhi Rajbhasha Shield by Dept. of Indian Official Language,

Ministry of Home Affairs, GOI.

6. Gold trophy of Scope Meritorious Award for Excellence in Corporate Governance

in.

7. 5th Social and Corporate Governance Award under the Category of "Best

Corporate Social Responsibility Practice"

8. Global HR excellence award for the outstanding contribution to the cause of

education.

9. Asia Best Employer Brand Award" for Excellence in Training.

10. Award for Brand Excellence" under Banking & Financial Services.

11. Punjab National Bank conferred with Appreciation Certificate in 6th Global CSR

Summit - cum – Excellence Awards.

60
ORGANIZATION STRUCTURE:

An organizational structure defines how activities such as task allocation,

coordination and supervision are directed towards the achievement of organizational

aims. Organizations are a variant of clustered entities. An organization can be

structured in many different ways, depending on their objectives. The structure of an

organization will determine the modes in which it operates and performs.

PNB Organizational Structure:-

61
Bank has its Corporate Office at New Delhi, with its 13 Field General Managers and

69 Circle Offices under which the branches function. The delegation of powers is

decentralized into the branch level to facilitate quick decision making.

PNB PRODUCTS

Punjab National Bank is extensively catering to banking needs of Non-resident

Indians, Importers & Exporters particularly relating to foreign exchange business

including Imports & Exports of Goods & Services as also Remittances etc.

 Corporate banking

 Personal banking

 Industrial finance

 Agricultural finance

62
 Financing of trade

 International banking

 Home loan

 Auto loan

 ATM/DEBIT Card

 Deposit Interest rates

 Credit Interest rates

 Other Services: Locker Facilities, Senior Citizen Schemes, Merchant

Banking,

 Electronic Fund Transfer & Clearing Services, etc.

PNB METLIFE ANNOUNCES RS 532 CRORE BONUS FOR

POLICYHOLDERS IN FY21

PNB MetLife India Insurance Company has announced a bonus of Rs 532 crore for

the eligible policyholders of participating products during 2020-21.

PNB MetLife India Insurance Company has announced a bonus of Rs 532 crore for

the eligible policyholders of participating products during 2020-21.

This bonus is 7 per cent higher than that in previous year.

PNB MetLife said it has been consistently declaring bonus on participating products

every year and 4.6 lakh customers, whose policies are in force as of March 31, 2021,

will be benefiting from this bonus.

Policyholder bonus is the share of profits generated by the company's participating

funds which is paid to the customers at various benefit events.

PNB MetLife's strong fund management capabilities coupled with robust risk

management practices have enabled the company to reward policyholders with higher

bonus payouts, the insurer said in a release on Friday.

63
Ashish Kumar Srivastava, MD & CEO, PNB MetLife, said despite these trying times,

the company has delivered steady growth on participating products over the years.

"The declaration of this Rs 532 crore bonus reinforces our commitment to help our

customers reach their financial aspirations through every stage of Life," he said.

PNB MetLife's shareholders include MetLife International Holdings LLC. (MIHL),

Punjab National Bank (PNB), Jammu & Kashmir Bank, M Pallonji and Company Pvt

Ltd and other private investors. MIHL and PNB are the majority shareholders.

PNB METLIFE RECEIVES THREE NEW INTERNATIONAL

ORGANIZATION FOR STANDARDIZATION (ISO)

CERTIFICATIONS

Mumbai: PNB MetLife has received three coveted International Organization for

Standardization (ISO) certificates recognizing its leadership in Business Continuity

Management System - ISO/IEC 22301:2012, Information Security Management

System - ISO/IEC 27001:2013, and IT Security Management System - ISO/IEC 2000-

1:2011.

The three ISO certifications, established by DNV GL Business Assurance UK

Limited, set international standards and provide guidelines, for managing business

continuity challenges and risks which can be implemented across the lifecycle of the

organization.

With the onset of the global COVID-19 pandemic, PNB MetLife enacted a robust

business continuity plan that went beyond IT infrastructure. It ensured the safety and

wellbeing of employees, continued customer engagement and digital servicing, and

simplified premium payment and claims processes.

The governing body also recognised PNB MetLife’s information security and IT

service management systems for planning, establishing, implementing, operating,

64
monitoring, reviewing, maintaining and improving IT Service Management Systems.

With increased digital transactions and servicing during the lockdown, PNB

MetLife’s robust information security and service management practices ensured

customers could continue to access its full range of products and services and transact

with confidence that their data was secure.

Ashish Kumar Srivastava, MD & CEO, PNB MetLife, said “The ISO certifications

provide global validation to PNB MetLife’s rigorous efforts in developing and

implementing a quality management system that continuously delivers beyond the

expectations of all the stakeholders. We are building a resilient organisation that is

prepared to support our customers in any situation.”

SN ISO Certificate Standard Name Description

1 ISO/IEC 22301:2012 Business Business

Continuity Continuity
Management Management
System System for design,
development, issue
and servicing of
Life Insurance
Products and
supporting
processes

2 ISO/IEC 27001:2013 Information Establishing,

Security implementing,
Management maintaining and
System continually
improving an
Information
Security
Management
system

3 ISO/IEC 20000-1:2011 IT Service Planning,

Management establishing,
System implementing,
operating,
monitoring,

65
 reviewing,
maintaining and
improving an IT
Service
Management
Systems

PNB MetLife India Insurance Company Limited (PNB MetLife) has as its

shareholders MetLife International Holdings LLC. (MIHL), Punjab National Bank

Limited (PNB), Jammu & Kashmir Bank Limited (JKB), M. Pallonji and Company

Private Limited and other private investors, with MIHL and PNB being the majority

shareholders.

1. BACKGROUND:

PNB MetLife is a joint venture between Punjab National Bank (PNB), one of India's

leading public sector banks, and MetLife International Holdings LLC, a subsidiary of

MetLife Inc., a global insurance and financial services company based in the United

States. The company was established in 2001 as MetLife India Insurance Company

Limited and later became PNB MetLife India Insurance Company Limited after

PNB's participation.

The background of PNB MetLife, also known as PNB MetLife India Insurance

Company Limited, encompasses its origin, ownership structure, and key

developments.

66
HERE'S AN OVERVIEW OF ITS BACKGROUND:

1. ESTABLISHMENT AND OWNERSHIP:

PNB MetLife India Insurance Company Limited was established in 2001 as MetLife

India Insurance Company Limited. It began its operations in India as a joint venture

between two entities:

MetLife International Holdings LLC: MetLife Inc., a global insurance and financial

services company headquartered in the United States. MetLife is one of the largest

and most well-established insurance companies globally, with a history dating back to

the 19th century.

Punjab National Bank (PNB): PNB is one of India's leading public sector banks, with

a rich history dating back to 1894. PNB's involvement in the joint venture brought

extensive banking expertise and a vast network of branches in India

2. JOINT VENTURE STRUCTURE:

In this partnership, MetLife International Holdings LLC initially held a majority

stake, while Punjab National Bank held a significant minority stake in the insurance

company. This structure allowed for the integration of insurance products into PNB's

extensive branch network, a distribution channel known as bancassurance.

3. TRANSITION TO PNB METLIFE:

Over the years, the company evolved and expanded its operations in India. In 2011,

the company underwent a rebranding and became known as "PNB MetLife India

Insurance Company Limited." This rebranding marked a stronger association with

Punjab National Bank and a clear indication of the bank's participation in the venture.

4. INSURANCE OFFERINGS:

67
PNB MetLife offers a wide range of life insurance and retirement solutions to cater to

the diverse financial needs of its customers. These offerings include term insurance,

whole life insurance, unit-linked insurance plans (ULIPs), savings and investment

plans, child and education plans, retirement plans, health and critical illness plans, and

more.

5. DISTRIBUTION NETWORK:

PNB MetLife leverages a robust distribution network to reach customers across India.

This network includes bancassurance through PNB branches, agency sales, direct

sales through its website and mobile app, corporate sales, and intermediaries.

6. DIGITAL INITIATIVES:

To stay competitive and cater to the digital-savvy Indian market, PNB MetLife has

implemented various digital initiatives, including online policy purchases, mobile

apps, digital marketing, and enhanced customer portals.

7. AWARDS AND RECOGNITIONS:

PNB MetLife has received several awards and recognitions for its insurance products,

customer service, risk management, and CSR initiatives, further establishing its

presence and reputation in the Indian insurance sector.

68
2. PRODUCTS AND SERVICES:

PNB MetLife offers a wide range of life insurance and retirement solutions to meet

the diverse financial needs of its customers. Its product offerings include:

Term Insurance: Provides pure life coverage for a specific term.

Whole Life Insurance: Offers lifelong coverage with savings and investment

components.

Unit-Linked Insurance Plans (ULIPs): Combines life insurance with investment

opportunities in market-linked funds.

Savings and Investment Plans: Includes endowment and money-back plans.

Child and Education Plans: Tailored to secure a child's future education.

Retirement Plans: Designed to help individuals plan for a financially secure

retirement.

Health and Critical Illness Plans: Provides coverage for medical expenses and critical

illnesses.

PNB MetLife offers a wide range of insurance and financial products and services to

cater to the diverse needs and preferences of its customers in India. Here is an

overview of the key products and services offered by PNB MetLife:

LIFE INSURANCE:

Term Insurance: Term insurance plans provide pure life coverage for a specified term.

These plans offer financial protection to the policyholder's family in the event of the

policyholder's untimely demise.

Whole Life Insurance: Whole life insurance plans provide lifelong coverage. They

combine life insurance with a savings or investment component, allowing

policyholders to build a cash value over time.

69
Unit-Linked Insurance Plans (ULIPs): ULIPs are investment-linked insurance plans

that offer both life coverage and the opportunity to invest in market-linked funds.

Policyholders can choose from a range of fund options based on their risk tolerance

and investment goals.

Savings and Investment Plans: These plans are designed to help individuals build

wealth over time while providing life coverage. They often include maturity benefits

and may have varying investment and savings components.

CHILD AND EDUCATION PLANS:

Child Education Plans: These plans are specifically tailored to secure a child's future

education expenses. They provide financial support for a child's education, even in the

policyholder's absence.

RETIREMENT PLANS:

Retirement Plans: PNB MetLife offers retirement plans designed to help individuals

plan for a financially secure retirement. These plans provide regular income during

retirement years.

HEALTH AND CRITICAL ILLNESS PLANS:

Health Insurance: PNB MetLife provides health insurance plans that cover medical

expenses, hospitalization costs, and other healthcare-related expenses. These plans

offer financial protection against unexpected medical bills.

Critical Illness Insurance: Critical illness plans provide a lump sum payout upon the

diagnosis of specified critical illnesses. This money can be used to cover medical

expenses, treatment costs, or other financial needs.

70
RIDERS AND ADD-ONS:

Riders: PNB MetLife offers a range of riders or add-on options that policyholders can

attach to their base insurance policies. These riders enhance the coverage and benefits

provided by the base policy.

Online and Digital Services:

Online Policy Purchase: Customers can explore, compare, and purchase insurance

policies directly through the company's official website and mobile app.

Customer Portals: Policyholders can access online customer portals to manage their

policies, pay premiums, and access policy-related documents and information.

CORPORATE AND GROUP INSURANCE:

Group Insurance: PNB MetLife offers customized group insurance solutions to

corporate clients and organizations. These group insurance policies often include life

insurance, health insurance, and other benefits for employees or group members.

Digital Initiatives:

Digital Services: PNB MetLife has embraced digital technologies to enhance

customer experience and accessibility. This includes mobile apps, online premium

payments, and digital KYC processes.

3. DISTRIBUTION NETWORK:

PNB MetLife has a widespread distribution network that includes:

Bancassurance: Leveraging the extensive branch network of Punjab National Bank

(PNB) to reach customers.

Agency Sales: Employing a network of insurance agents.

Direct Sales: Selling insurance products directly to customers.

Corporate Sales: Providing group insurance solutions to corporate clients.

71
A distribution network, in the context of an insurance company like PNB MetLife,

refers to the various channels and methods through which the company sells its

insurance products and services to customers. A robust distribution network is crucial

for reaching a wide customer base and ensuring the accessibility of insurance

offerings. Here are common elements of an insurance distribution network:

Bancassurance: Bancassurance is a distribution strategy where insurance products are

sold through banking channels. PNB MetLife leverages its partnership with Punjab

National Bank (PNB) to offer insurance products to the bank's customers. Bank

branches serve as points of sale for insurance policies.

Agency Sales: Insurance agents, often referred to as insurance advisors or agents, play

a pivotal role in selling insurance products. These agents may be affiliated with PNB

MetLife and work directly with the company to sell policies. They typically receive

commissions and incentives based on their sales performance.

Direct Sales: PNB MetLife may offer customers the option to purchase insurance

policies directly through its website or call centers. This approach allows customers to

research, compare, and buy insurance without intermediaries, offering convenience

and potentially cost savings.

Corporate and Group Sales: PNB MetLife may target corporate clients and employers

to provide group insurance policies for their employees. These policies can include

life insurance, health insurance, and other benefits tailored to the needs of the

organization's workforce.

Brokers and Intermediaries: Insurance brokers and intermediaries act as

intermediaries between PNB MetLife and customers. They can offer a range of

insurance products from various insurers, including PNB MetLife, and help customers

choose the most suitable policies.

72
Online Distribution: The company's website and mobile app serve as digital

distribution channels. Customers can explore available policies, obtain quotes, and

purchase insurance online. This approach is particularly relevant in the digital age.

Telemarketing: PNB MetLife may use telemarketing services to reach out to potential

customers via phone calls. Telemarketers provide information about insurance

products, answer questions, and assist in policy purchases.

Affinity Partnerships: PNB MetLife may collaborate with affinity groups,

associations, or organizations to offer specialized insurance products to their

members. For example, the company might partner with professional associations to

provide tailored coverage to their members.

Collaborations with Fintech Companies: In the modern era, some insurance

companies collaborate with fintech startups and technology platforms to reach a

younger, tech-savvy customer base. These partnerships may involve selling insurance

within apps or platforms popular among the target demographic.

International Distribution: If PNB MetLife operates in multiple countries or regions, it

may have an international distribution network to reach customers in those markets.

This could involve partnerships with local financial institutions or insurers.

The effectiveness of a distribution network is crucial for the growth and success of an

insurance company. It allows the company to reach diverse customer segments, offer

a wide range of insurance products, and provide convenient access to insurance

solutions. Additionally, a well-managed distribution network helps in delivering

personalized services and support to customers.

73
4. DIGITAL INITIATIVES:

The company has embraced digital technologies to enhance customer experience and

accessibility. Customers can purchase policies, pay premiums, and access information

online through the company's website and mobile app.

PNB MetLife, like many other insurance companies, has embraced digital initiatives

to enhance customer experience, streamline operations, and stay competitive in the

digital age. While specific initiatives may evolve over time, here are some common

digital initiatives that insurance companies often undertake:

Online Policy Purchase: PNB MetLife offers customers the ability to browse,

compare, and purchase insurance policies through their official website or mobile app.

This allows for a convenient and paperless application process.

Digital Claims Processing: Digitalization of claims processing speeds up the

settlement process. Customers can submit claims online, track the status, and receive

payments more efficiently.

Mobile Apps: PNB MetLife may have developed a mobile app that provides

policyholders with easy access to their insurance information, premium payments,

claims status, and other relevant services on their smartphones.

Online Premium Payment: Customers can pay their insurance premiums online

through the company's website or mobile app. Various payment options, including net

banking, credit/debit cards, and digital wallets, are usually available.

Customer Portals: Self-service customer portals allow policyholders to manage their

policies, update personal information, and access policy documents online, reducing

the need for physical paperwork.

74
Chatbots and Virtual Assistants: AI-powered chatbots and virtual assistants on the

website can answer customer queries, guide them through the insurance buying

process, and provide instant assistance.

Data Analytics: Insurance companies like PNB MetLife use data analytics to assess

risk, set premiums, and personalize offers for customers. Analyzing data can also help

in fraud detection and prevention.

Telematics and IoT: PNB MetLife may explore the use of telematics and Internet of

Things (IoT) devices to collect data on policyholders' behavior, such as safe driving

habits, which can lead to personalized insurance solutions.

Digital Marketing: Digital channels, including social media, email marketing, and

search engine optimization, are used to reach potential customers and engage with the

existing customer base.

Cybersecurity Measures: Given the sensitive nature of insurance data, robust

cybersecurity measures are implemented to protect customer information and prevent

cyber threats.

E-KYC (Know Your Customer): Digital KYC processes simplify customer

onboarding, making it easier and more convenient for individuals to purchase

insurance policies.

Video Conferencing and Virtual Sales: Especially relevant during the COVID-19

pandemic, PNB MetLife may have implemented video conferencing and virtual sales

processes to reach and serve customers remotely.

Machine Learning and Predictive Analytics: These technologies help in underwriting,

claims assessment, and fraud detection, ultimately improving the overall efficiency of

insurance operations.

75
Blockchain Technology: Blockchain can be used to enhance the security and

transparency of insurance transactions, particularly in areas like policy issuance and

claims settlement.

5. FINANCIAL STRENGTH:

PNB MetLife has demonstrated financial stability and growth in the Indian insurance

market. The company's financial performance is monitored by regulatory authorities,

including the Insurance Regulatory and Development Authority of India (IRDAI).

6. CORPORATE SOCIAL RESPONSIBILITY (CSR):

PNB MetLife is actively involved in CSR activities, focusing on areas like education,

health, and community development. It strives to make a positive impact on society

through various initiatives.

7. AWARDS AND RECOGNITIONS:

Over the years, PNB MetLife has received several awards and accolades for its

products, customer service, and innovation in the insurance sector.

It's important to note that the information provided here is based on my knowledge as

of September 2021. For the most up-to-date information about PNB MetLife,

including its products, services, and recent developments, it's advisable to visit the

company's official website or consult the latest news sources and financial reports.

Best Life Insurance Company - Private Sector (North): PNB MetLife received this

award at the BFSI Awards in 2020. The award recognized the company's excellence

in providing life insurance services in the northern region of India.

Golden Peacock Award for Risk Management: The Golden Peacock Awards are

prestigious honors for business excellence. PNB MetLife was recognized for its

effective risk management practices.

76
Claims Service Company of the Year: The company received the Claims Service

Company of the Year award at the Indian Insurance Summit & Awards 2020. This

award acknowledged PNB MetLife's commitment to providing efficient claims

services to its customers.

Customer Experience Award: PNB MetLife was recognized for its focus on

enhancing customer experience. Such awards often highlight efforts to improve

customer satisfaction and service quality.

Technology Excellence Award: PNB MetLife's innovative use of technology in the

insurance industry earned it recognition in various technology and innovation

categories.

Best CSR Practices: The company has also been recognized for its corporate social

responsibility (CSR) initiatives, emphasizing its commitment to making a positive

impact on society.

77
OBJECTIVES OF
THE STUDY

78
 OBJECTIVES OF THE STUDY

 To know the customers awareness regarding the life insurance.

 To know the customers awareness regarding the various life insurance companies

in the insurance sector.

 To know the customers preference towards the private or public insurance sector.

To know the different promotion strategy used by companies to aware their

customers.

 To evaluate the factors underlying consumer perception towards investment in life

insurance policies.

 To develop and standardize a measure to evaluate investment pa tern in life

insurance services.

79
 RESEARCH
METHODOLOGY

80
 RESEARCH METHODOLOGY

In the present descriptive

study is employed. an
attempt has been made to
measure, evaluate and
compare the financial
performance of the Bank.
the analysis partitioned
two side aspect of
stakeholders. the
shareholders wealth and
other external
stakeholders. The study is
based on
secondary data that has
been collected from
annual reports of the
bank website, magazines,
journals, documents and
other published

81
information. The study
covers the period of 5
years
from year 2010-11 to year
2014-15. Ratio Analysis was
applied to analyze and
compare the
trends in banking business
and financial performance.
1.8 STATISTICAL TOOLS
the Researcher has used
the following tools to
present and analysis data
data presentation
I. tables
II. Diagrams
data analysis
I. Microsoft excel 2007
1.9 PERIOD OF THE STUDY

82
this study of financial ratio
analysis is limited to five
years from 2010 to 2015.
the accounting
year starts from 1 April to
31 march.
1.10 SCHEME OF
CHAPTERISATION
The researcher is prepared
the following scheme of
chapterisation.
1. The first chapter deals
with introduction and
research design of the
study.
2. The second chapters
describes the Industry and
company profile
3. The third chapter deals
with literature review.

83
4. The fourth chapter is
devoted to the research
methodology.
5. The fifth chapter is data
analysis and interpretation.
6. The sixth chapter gives
findings of the study
Research methodology is a way to systematically solve the research problem. It may

be understood as a science of studying how research is done scientifically. In it we

study the various steps that are generally adopted by a researcher in studying his

research problem along with the logic behind them. It is necessary for the researcher

to know not only the research methods/ techniques but also the methodology.

Researcher not only need to know how to develop certain indices or tests, how to

calculate the mean, the mode, the median or the standard deviation or chi- square,

how to apply particular research techniques , but they also need to know which of

these methods or techniques are relevant and which are not , and what they mean and

indicate. Researchers also need to understand the assumptions underlying various

techniques and they need to know the criteria by which they can decide that certain

techniques and procedures will be applicable to certain problems and others will not .

All this means that it is necessary for the researcher to design a methodology for his

problem as the same may differ from problem to problem.

Research in common parlance refers to a search for knowledge. Once can also define

research asa scientific and systematic search for pertinent information on a specific

topic. In fact, research is an art of scientific investigation. The Advanced Learner’s

84
 Dictionary of Current English lays down the meaning of research as “a careful

investigation or inquiry especially through search for new facts in any bLucknow of

knowledge. Redman and Mary define research as a “systematized effort to gain new

knowledge. “Some people consider research as a movement, a movement from the

known to the unknown. It is actually a voyage of discovery. We all possess the vital

instinct of inquisitiveness for, when the unknown confronts us, we wonder and our

inquisitiveness makes us

probe and attain full and fuller understanding of the unknown. This inquisitiveness is

the mother of all knowledge and the method.

TYPE OF RESEARCH:

The research design of the project is descriptive and analytical research which has

helped in the analysis and description of the candidates.

i. DESCRIPTIVE RESEARCH -

Descriptive research includes surveys and the facts finding enquires of different kinds. The

major purposes of descriptive research are description of the state of affairs as it exists

at present. In social science and business research we quiet often use the term Ex post

factor research for descriptive research studies. The main characteristics of this

method are that the researcher has no control over the variables; he can only report

what has happened or what is happening. The methods of

Research utilized in descriptive research is survey methods of all kinds, including

comparative and co – relational methods.

The descriptive research attempts to describe, explain and interpret conditions of the

present i.e. “what is’. The purpose of a descriptive research is to examine a

phenomenon that is occurring at a specific place(s) and time. A descriptive research is

85
concerned with conditions, practices, structures, differences or relationships that exist,

opinions held, processes that are going on or trends that are evade

DATA COLLECTION TOOLS:

Company reports

Newspapers

Various websites

Brochures

86
 DATA COLLECTION METHODS:

For this project report primary data (through interviews and selection methods) and

secondary data (employees data records provided by the company) both has been

collected.

I. PRIMARY DATA –

Primary data refers to the first hand data gathered by the researcher himself.

Secondary data means data collected by someone else earlier. Surveys, observations,

experiments, questionnaire, personal interview, etc. Government publications,

websites, books, journal articles, internal records etc..

II. SECONDARY DATA –

Secondary data means data that are already available i.e. they refer to the data which

have been collected and analyzed by someone and can save both money and time of

the researcher. Secondary data may be available in the form of company records,

trade publications, libraries etc. secondary data sources are as follows:

 Company reports

 Daily newspaper

 Standard textbook

 Various websites

87
FIELD WORK:

An interview scheduled and well structured questionnaire is administered to the target

respondents to collect primary data ( copy of questionnaire is attached in the

appendix) Open and close-ended questions are used in the questionnaire. The orders

of the questions are in such a manner that they begin with simple questions and lead

on the questions that needed more involvement from respondents. The secondary data

are collected from periodicals, magazines, journal and internet.

RESEARCH DESIGN:

A research design is a basic plan, which guides the researcher in the collection and

analysis of data required for practicing the research. Infect the research design is the

conceptual structure where the research is conducted. It constitutes the “blue print”

for the collection , measurement and analysis of the data . The study is carried out to

understand the “customer preference towards life insurance products with special

reference to LIC”. Foe this study the researcher used explanatory research designs.

This research covers 50 customers in Lucknow city

SAMPLE DESIGN:

The process of drawing a sample from a large population is called sampling.

Population refers to the total of items about which information is defined. well

selected samples may reflect fairly and accurately the characteristics of the

population.

SAMPLING UNIT:

The sample unit of this survey was the customers from Lucknow city.

SAMPLING SIZE:

The sample size was 100 customers from various parts of Lucknow city.

88
DATA ANALYSIS
&
INTERPRETATION

89
 DATA ANALYSIS & INTERPRETATION

Q1) How did you come to know about the insurance policies?

Factors No of respondents (% of respondents)

Newspaper 10 10%

Television 34 34%

Friends/ Family 44 44%

Others 12 12%

Total 100 100%

No of respondents
Newspaper Television Friends/ Family Others

12% 10%

34%

44%

INTERPRETATION

About 44% customer respondent that they will know about the PNB MetLife

insurance through friends/family and 34% know through television or 10% through

newspaper, 12% know through others.

90
Q2) Which company policy do you have?

Factors No of respondents (% of respondents)

LIC 58 58%
ICICI 0 0%
PNB METLIFE 30 30%
Others 12 12%
Total 100 100%

No of respondents
LIC ICICI
SHRI RAM INSURANCE COMPANY Others

12%

30%
58%

INTERPRETATION

In the survey about 58% of the customer having LIC product as compare to PNB

MetLife 30% of them have PNB MetLife product and 12% have other insurance

company product.

91
Q3) What is periodicity of premium?

Factors No of respondents (% of respondents)

Monthly 16 16%

Half yearly 28 28%

Quarterly 0 0%

Yearly 56 56%

Total 100 100%

No of respondents
Monthly Half yearly Quarterly Yearly

16%

56%
28%

INTERPRETATTION

About 56% of the customer will pay on the yearly bases or 28% pay on half yearly

bases and 16% have pay on monthly bases.

92
Q4)PNB MetLife insurance in your opinion is important because?
Factors No of respondents (% of respondents)

Risk cover 8 8%
Tax saving 14 14%
Investment 4 4%
All of them 74 74%
Total 100 100%

No of respondents
Risk cover Tax saving Investment All of them

8%

14%

4%

74%

INTERPRETATION

Through the survey I found that Life Insurance Corporation of India opinion through

the customer is important because of all of them i.e74% customer say because of (tax

saving, investment, risk cover) and 14% customer say that because of tax saving or

8% because of risk cover and 4% because of investment.

93
Q5) what is a sum assured (RS) of your premium?
Factors No of respondents (% of respondents)

60,000-1,50,000 24 24%
1,50,000-2,50,000 40 40%
2,50,000-5,00,000 30 30%
5,00,000 above 6 6%
Total 100 100%

No of respondents
60,000-1,50,000 1,50,000-2,50,000 2,50,000-5,00,000 5,00,000 above

6%

24%

30%

40%

INTERPRETATION

During the survey most of the customer having the sum assured between 1.5 lakh to

2.5 lakh (40%) and 30% of the customer having sum assured between 2.5 lakh to 5

lakh or 20% of the customer having sum assured between 60 thousand to 1.5 lakh.

94
Q6) which scheme of insurance policy have you taken?

Factors No of respondents (% of respondents)

Health insurance plan 14 14%

Endowment plan 68 68%
ULIPs 0 0%
Others 18 18%
Total 100 100%

No of respondents
Health insurance plan Endowment plan ULIPs Others

14%
18%

68%

INTERPRETATION

About 68% customer have endowment plan in Life Insurance Corporation of India or

14% having health insurance plan and 18% having other insurance plan in Life

Insurance Corporation of India.

95
Q7)If you buy a new policy would you like to go for Life Insurance Corporation of
India insurance?

Factors No of respondents (% of respondents)

Yes 86 86%
No 14 14%
Total 100 100%

No of respondents
Yes No

14%

86%

INTERPRETATION

In the survey I found that about 86% of the customer will buy (repurchase) new

insurance policy from Life Insurance Corporation of India and 14% will not interested

to repurchase the Life Insurance Corporation of India product.

96
Q8) What would you like more in insurance policies og Life Insurance Corporation of
India of India?

Factors No of respondents (% of respondents)

Good return 18 18%

Tax benefit 8 8%
Other/both 74 74%
Total 100 100%

No of respondents
Good return Tax benefit Other/both

18%

8%

74%

INTERPRETATION

Above pie chart show that about 74% of customer say that insurance policy will

provide both good return or tax benefit and (other benefit) and 18% say that only

good return or 8% say that only Tax benefit..

97
Q9) Rate your overall satisfaction with insurance policies of Life Insurance
Corporation of India of India?

Factors No of respondents (% of respondents)

Highly satisfaction 16 16%
Satisfactory 56 56%
Average 28 28%
Dissatisfaction 0 0%
Total 100 100%

No of respondents
Highly satisfaction Satisfactory Average

16%
28%

56%

INTERPRETATION

Through the overall survey it show that about 56% of the customer get satisfactory

with Life Insurance Corporation of India insurance product or around 28% have

average and 16% customer get highly satisfaction with it.

98
FINDINGS

99
 FINDINGS

 44% customer respondent that they will know about the Life Insurance

Corporation of India insurance through friends/family and 30% know through

television or 14% through newspaper, 12% know through others.

 58% of the customer having LIC product as compare to Life Insurance

Corporation of India 30% of them have Life Insurance Corporation of India

product and 12% have other insurance company product.

 56% of the customer will pay on the yearly bases or 28% pay on half yearly

bases and 16% have pay on monthly bases.

 Life Insurance Corporation of India opinion through the customer is important

because of all of them i.e74% customer say because of (tax saving,

investment, risk cover) and 14% customer say that because of tax saving or

8% because of risk cover and 4% because of investment.

 most of the customer having the sum assured between 1.5 lakh to 2.5 lakh

(40%) and 30% of the customer having sum assured between 2.5 lakh to 5

lakh or 20% of the customer having sum assured between 60 thousand to 1.5

lakh.

 68% customer have endowment plan in Life Insurance Corporation of India or

14% having health insurance plan and 18% having other insurance plan in

Life Insurance Corporation of India.

 86% of the customer will buy (repurchase) new insurance policy from Life

Insurance Corporation of India and 14% will not interested to repurchase the

Life Insurance Corporation of India product.

100
 74% of customer say that insurance policy will provide both good return or tax

benefit and (other benefit) and 18% say that only good return or 8% say that

only Tax benefit..

 56% of the customer get satisfactory with Life Insurance Corporation of India

insurance product or around 28% have average and 16% customer get highly

satisfaction with it.

101
SUGGESTIONS

102
 SUGGESTIONS

The suggestions are based on analysis and observation during the field study-

 Due to intense competition in the life insurance market, PNB MetLife has to adopt

better strategies to attract more customers.

 Return on investment, company reputation and premium outflow are most preferred

attributes that are expected by the respondents. Hence greater focus should be given to

these attributes.

 Life insurance products are taken mainly by middle and higher income group. Hence

they should be regarded as main targeted income groups. Life insurance products

which are suitable for lower income group should also be released so that the market

share increases.

 PNB MetLife should adopt effective promotional strategies to increase the awareness

level among the consumers and to win their trust.

 PNB MetLife should ask for their consumer’s feedback to know whether the

consumers are really satisfied of dissatisfied with the service and product offered by

them. If they are dissatisfied, then the reasons for dissatisfaction should be found out

and corrected in future.

 The LIC brand name has earned a lot of goodwill and enjoys high brand equity. As

there is intense competition in life insurance market, PNB MetLife should work hard

to come in the top position.

103
CONCLUSION

104
 CONCLUSION

The purpose of the study was how LIC works and how it retains the market. In FY21

LIC has the one of the leading organisations who offers best insurance plans. LIC

collects highest ever premium of Rs. 1.84 trillion in FY21. LIC continued its

performance in new business, despites a highly challenging business environment due

to the covid- 19. LIC is offering several plans which it says will provide insurance,

protection, wealth creation in the long term, secure financial future after retirement,

health insurance. Apart from these, one will get tax benefits under income tax act.

LIC employees are expected to benefit from wage revision with over 25 per cent hike

in their packets 5 days’ work week. They always try to hold their customers by

offering them with great new policy every quarters. The customers have keen faith in

LIC. And during pandemic of second wave on the month of may it benefited to lots of

customers financially and give relief for them and to their family. Due to the great

performance, it contributed 11% in the GDP growth during pandemic. Which make

me curious how it survives in pandemic and make such growth in this year that’s why

I choose LIC as a topic of internship report

105
LIMITATIONS
OF THE STUDY

106
 LIMITATIONS OF THE STUDY
Time constraints:

The time stipulated for the project to be completed is less and thus there are chances

that some information might have been left out, however due care is taken to include

all the relevant information needed.

Sample size:

Due to time constraints the sample size was relatively small and would definitely have

been more representative if I had collected information from more respondents.

Accuracy:

It is difficult to know if all the respondents gave the accurate information; some

respondents to give misleading information.

107
BIBLIOGRAPHY

108
 BIBLIOGRAPHY

WEBSITES:

• www.google.com
• www.economictimes.com
• https://en.m.wikipedia.org
• https://www.policygenius.com

NEWSPAPER:

 Times of India
 Economic times

109
ANNEXURE

110
 QUESTIONNAIRE –
NAME:-

AGE:-

GENDER:-

OCCUPATION:-

Q1) What do you like about Life Insurance Corporation Of India Insurance policy?

a) Good Return

b) Tax Benefit

c) Others

Q2) What is periodicity of premium?

a) Monthly c) Quarterly

b) Half yearly d) Yearly

Q3) Your mode of premium?

a) Cheque c)credit card

b) Debit card d) others

Q4) Life Insurance Corporation of India insurance in your opinion is important

because?

a) Risk cover c) Investment

111
 b) Tax saving d) All of them

Q5) what is the sum assured (RS) of your premium?

a) 60,000-1,50,000

b) 1,50,000- 2,50,000

c) 250,000- 5,00,000

d) 5,00,000 above

Q6) Are you satisfied with the service provided by the Life Insurance Corporation of

India insurance?

a) Satisfied

b) Very much satisfied

c) Not satisfied

Q7) Whether you are aware of all detail of policy you have from Life Insurance

Corporation of India?

a) Yes

b) No

Q8) What would you like more in insurance policies of Life Insurance Corporation of

India of India?

a) More benefit

b) More security

c) Others

112
Q9) Rate your overall satisfaction with insurance policies of Life Insurance

Corporation of India of India?

a) Highly satisfaction

b) Satisfactory

c) Average

d) Dissatisfaction

113